DEERE & Co, the world's largest maker of farm equipment, reached a definitive agreement to own 50 percent of Xuzhou Xuwa Excavator Machinery Co to expand its construction machinery presence in China.

Xuzhou Xuwa, a unit of Xuzhou Bohui Science and Technology Development Co, is the third-largest excavator manufacturer in China, Deere said in a statement. Financial terms of the deal weren't disclosed, and the transaction must be approved by Chinese authorities, the company's statement said.